Signil Wealth Consulting Group will help you evaluate and maximize the performance of any real estate portfolio and will help you build a comprehensive real estate plan to increase overall returns using Portfolio Compression techniques.
Headquartered in Denver, Colorado, Signil is a real estate planning and acquisitions firm with a national reach. The Signil database monitors every zip code in the country and weekly, ranks the supply and demand performance of over 12,000 cities. The market intelligence derived from this monitoring system is an integral component during the implementation of our Planning and Acquisitions services.
A founding business member of the Association of Real Estate Portfolio Planners (AREPP), Signil is retained by top finance companies and regularly trains real estate, finance and investment professionals nationwide in the principles of real estate portfolio planning. The power of the Signil Transaction Management and Acquisitions groups provides you a direct link to behind the scenes support, access to investment inventory nationwide and comprehensive market research services. Our services help professional real estate advisors and investors target top returns by blending a cash flow and equity strategy using Portfolio Compression techniques into any land, residential or commercial real estate portfolio.
Recent Articles
Are Your Real Estate Holdings Maximizing Your Real Estate Portfolio?
In 2001, real estate investor Mary Cummins of Denver, Colorado made a critical mistake. She began building a real estate portfolio purchasing residential real estate as her means of establishing long term, passive cash flow. There are several reasons why her plan ultimately failed.
Mary, a community leader, volunteer and mother, decided that she wanted to do something to add to her family’s long term financial security. Mary’s husband was employed by a large pharmaceutical company and while there was no immediate need for cash or cash flow, Mary had a plan. Her plan was well thought out; discussed with her husband and received the blessing of their family’s trusted advisors, their CPA, attorney and financial planner.
The plan was to use some of their existing investment capital, along with leverage to purchase single family and small multi-family residential properties. Mary determined that at the current area rents, if she put between 10% and 20% down on each property, each one would cash flow approximately $100 to $150 per month. Over time, she expected the loans on each property would be paid down and her cash flow would rise.
What Happened Next
Over the next three years, Mary bought 14 properties with an average purchase price of about $185,000. She put approximately $450,000 down and calculated that she would be receiving between $1,500 and $2,000 per month in passive income.
Unfortunately, vacancy was consistently higher than expected, local market conditions remained flat and she discovered that even one extra vacancy completely wiped out every penny of her anticipated monthly cash flow. Paying down the loans did not happen and market conditions prevented values from rising. What Mary ended up with, was the reality that she had traded cash for a rather significant negative cash flow.
Mary made the common mistake of using residential housing in her attempt to create cash flow. While she had the right goal, cash flow, in mind, she failed to calculate the external impacts of local market conditions on reaching her goal. In essence, Mary used... read more->
Have You Performed Your Real Estate ‘Check Up’ Lately?
If you invest in real estate, it’s worth your time to perform a periodic portfolio performance evaluation. NAR and OFHEO both recently released updated statistics supporting a current cooling of the housing markets across many cities nationwide. This national cooling could be significantly impacting the performance of your real estate portfolio. The questions you must ask are (1) whether, (2) how significantly and (3) what can be done if your current real estate holdings are being affected by these localized pockets of cooling.
Portfolio Compression Strategies
Real estate investor, David Robertson is the perfect example of this situation. David has owned an investment condo for the past 12 years. The loan on the property is paid off, and David has a $100,000 line of credit open against the $400,000 condo. During David’s years of ownership, there have been certain times that the condo has increased significantly in value. At other times, David has owned the condo through local economic periods that have caused higher vacancy, lower cash flow and more money out of his pocket.
During both experiences, David held true to his original buy and hold philosophy. It has paid off and today, David has nearly $350,000 available from this single investment. But, has David’s investment paid off to its full potential? To answer this question you need to explore Portfolio Compression techniques within a real estate portfolio.
Portfolio Compression within a real estate portfolio is a blend of property and market selection strategies which over time subscribe to the traditional buy and hold approach with a slight twist. The twist: Don’t buy and hold the same properties in the same cities over the entire life of your real estate portfolio. In other words, don’t subject your real estate holdings to the good and the bad of local market economics. When local economic conditions are good; buy and hold. Before or as local economic conditions change; sell and reposition your real estate holdings into other cities.
The 5 Steps to Portfolio Compression
An underperforming real estate portfolio can be improved. Here are the five steps to evaluating and getting your portfolio back on track:
Evaluate the performance of your current real estate holdings
Create a comprehensive personalized or corporate real estate plan
Research local market conditions where you currently own investment property
Choose cities across the country in which performance data is beating the average
Establish your advisory team to successfully implement Portfolio Compression
Financial modeling of the traditional bu... read more->
Targeting Economic Centers
The Key to an Institutional Investors Yield
Commercial real estate is driven by economic centers anchored by population, commerce and distribution. Whether investment yields are derived from cash flow returns, equity gains or blended strategies, maintaining access to the most up to date and accurate information is key to a real estate manager making intelligent decisions. Real estate decision makers are often weary of real estate market evaluation and market selection. So often this is the case purely because market analysis can be a challenging task with information that is often times subjective in nature. The national real estate markets are driven by the economic migration of people and capital. Whether targeting acquisitions in single family housing, multi-family housing, retail, industrial or hotel sectors, each platform is subjected to the economic fundamentals of supply and demand.
Macro economic decisions of market selection are tied to the real estate market cycle which exist both at the national and localized levels. Micro economic decisions are property... read more->
Maximum Profits While Navigating Economic Change
“The Real Estate Cycle and its Impact on Your Wealth”
Are You Limiting Your Wealth Potential?
Real estate investors that build wealth using the traditional long term buy and hold approach often overlook one of the most profitable and passive strategies of real estate – timing. Strategically building a portfolio based on timing focuses investment buying decisions in parts of the country with economic strengths support rising real estate values, regardless of the investor’s hometown. Real estate markets cycle based on the fundamental economics of supply and demand. As economic conditions in one city cause real estate values to rise, values in another city remain flat as vacancies climb. A few years’ later economic conditions change in both markets, the cities swap place in the cycle and the opposite city now has skyrocketing real estate values. Signil Wealth Consulting Group tracks this cycle and monitors the economics of thousands of real estate markets weekly.
Building a real estate portfolio by... read more->
